The Analytical Overview of the Main Currency Pairs on 2017.09.14

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.19659

Open: 1.18818

% chg. over the last day: -0.66

Day's range: 1.18660 – 1.18938

52 wk range: 1.0341 – 1.2069

Yesterday, the US dollar strengthened significantly relative to the "majors". The growth of the dollar index (#DX) exceeded 0.5%. The report on the producer price index was mixed. At the same time, the administration of the US president said that tax reform could be adopted before the end of 2017. These events caused a significant demand for the US dollar. The drop in the EUR/USD quotes exceeded 80 points. At the moment, the key trading range is 1.18750-1.19300.

Economic reports from the United States on 2017.09.14:

- The basic consumer price index at 15:30 (GMT+3:00);

- The number of initial applications for unemployment benefits at 15:30 (GMT+3:00).

The price is below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram has fixed in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates the EUR/USD correction.

Trading recommendations

Support levels: 1.18750, 1.18000

Resistance levels: 1.19300, 1.19600

If the statistics from the US turns out to be positive, the downward trend on the EUR/USD currency pair may continue. The movement is tending potentially to 1.18250-1.18000.

An alternative may be the growth of the EUR/USD quotations to the level of 1.19300-1.19600.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.32815

Open: 1.32078

% chg. over the last day: -0.58

Day's range: 1.31970 – 1.32227

52 wk range: 1.1450 – 1.3447

Yesterday, a correction was observed on the GBP/USD currency pair. The drop in quotations exceeded 0.5%. At the moment, the trading instrument is consolidating. Investors adopted a wait-and-see attitude before the meeting of the Bank of England. Most experts believe that the regulator will leave the interest rate at the previous level of 0.25%. We recommend paying attention to the comments of representatives of the Central Bank. The significant acceleration of inflation and weak wage growth can lead to a decline in living standards in the UK. We recommend opening positions from the key levels.

At 14:00 (GMT+3:00) the meeting of the Bank of England will be held.

The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates the growth of the GBP/USD currency pair.

Trading recommendations

Support levels: 1.32150, 1.31100

Resistance levels: 1.33000

If the Bank of England points out a possible tightening of monetary policy, we recommend considering buying GBP/USD. The movement is tending to 1.33000-1.33250.

An alternative may be the fall of GBP/USD to 1.31250-1.31000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.21850

Open: 1.21728

% chg. over the last day: -0.13

Day's range: 1.21602 – 1.21877

52 wk range: 1.2414 – 1.3795

Yesterday's trading on USD/CAD was quite active. However, a unidirectional trend was not observed. At the moment, the technical pattern is ambiguous. The key trading range is 1.21600-1.22300. The Canadian dollar is supported by the growth of the oil quotes. We recommend you to pay attention to statistics from the USA.

At 15:30 (GMT+3:00) the price index for new housing in Canada will be published.

The USD/CAD quotes have fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/CAD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which indicates the USD/CAD price drop.

Trading recommendations

Support levels: 1.21600, 1.21000

Resistance levels: 1.22300, 1.23000

If the economic reports from the US are optimistic, we recommend considering USD/CAD purchases. The target movement level is 1.22300-1.22500.

An alternative may be the reduction of the USD/CAD currency pair to a round level of 1.21000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 110.126

Open: 110.483

% chg. over the last day: +0.30

Day's range: 110.357 – 110.730

52 wk range: 99.53 – 118.67

Since the beginning of this week, there have been aggressive purchases of USD/JPY. The currency of the "safe haven" weakened against the US dollar by more than 250 points. At the moment, the key levels of support and resistance are 110.250 and 110.700 respectively. In the near future, a technical correction is not excluded. We recommend paying attention to the government bonds yield and statistics from the US.

The news background on the economy of Japan is calm today.

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

Stochastic Oscillator is close to the oversold zone, the %K line starts crossing the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 110.250, 109.800

Resistance levels: 110.700, 111.000

If the price fixes below the local support of 110.250, a correction may develop on the USD/JPY currency pair. The immediate goal for profit-taking is 109.800.

Alternative option. If the USD/JPY quotes overcome the level of 110.700, we recommend looking for entry points to the market to open long positions. The movement is tending to 111.000-111.250.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.